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Chapter 6

Courage and Moral Leadership

6e

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives

Combine a rational approach to leadership with a concern for people and ethics

Understand how leaders set the ethical tone in organizations and recognize the distinction between ethical and unethical leadership

Recognize your own stage of moral development and ways to accelerate your moral maturation

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©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives

Know and use mechanisms that enhance an ethical organizational culture

Apply the principles of stewardship and servant leadership

Recognize courage in others and unlock your own potential to live and act courageously

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©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ethical Climate in Business

Leaders face pressures that challenge their ability to do the right thing

Obstacles for leaders

Personal weakness and self-interest

Pressures to:

Cut costs and increase profits

Meet the demands of vendors or business partners and look successful

Please shareholders

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©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Leaders Set the Ethical Tone

Act as positive role models

Signal what matters by their behavior

Focus on employees, customers, and the greater good

Not paying attention to gaining benefits themselves

Honest with employees, partners, customers, vendors, and shareholders

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©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Leaders Set the Ethical Tone

Strive for fairness and honor agreements

Share the credit for successes and accept the blame when things go wrong

Speak up against acts they believe are wrong

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Acting Like a Moral Leader

Recognize and adhere to ethical values

Acknowledge the importance of human meaning, quality, and higher purpose

Encourage others to develop and use moral values and adhere to ethical standards of conduct

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Exhibit 6.2 - How to Act Like a Moral Leader

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Sources: Based on Linda Klebe Treviño, Laura Pincus Hartman, and Michael Brown, “Moral Person and Moral Manager: How Executives Develop a Reputation for Ethical Leadership,” California Management Review 42, no. 4 (Summer 2000), pp. 128–142; Christopher Hoenig, “Brave Hearts,” CIO (November 1, 2000), pp. 72–74; and Patricia Wallington, “Honestly?!” CIO (March 15, 2003), pp. 41–42

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Becoming a Moral Leader

Moral leadership: Distinguishing right from wrong and doing right

Seeking the just, honest, and good in the practice of leadership

Internal characteristic that influences a leader’s capacity to make moral choices is the individual’s level of moral development

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©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exhibit 6.4 - Three Levels of Personal Moral Development

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Sources: Based on Lawrence Kohlberg, “Moral Stages and Moralization: The Cognitive-Developmental Approach,” in Moral Development and Behavior Theory, Research, and Social Issues, ed. Thomas Likona (Austin, TX: Holt, Rinehart and Winston, 1976), 31–53; and Jill W. Graham, “Leadership, Moral Development, and Citizenship Behavior,” Business Ethics Quarterly 5, no. 1 (January 1995), 43–54

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Servant Leadership

Leader transcends self-interest to:

Serve the needs of others

Help others grow

Provide opportunities for others to gain materially and emotionally

Types

Authoritarian management

Participative management

Stewardship

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Exhibit 6.5 - Changing Leader Focus from Self to Others

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Authoritarian Management

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Leaders set the strategy and goals, as well as the methods and rewards for attaining them

Organizational stability and efficiency are paramount

Subordinates are given:

No voice in creating meaning and purpose for their work

No discretion as to how they perform their jobs

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Authoritarian Management

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Emphasis on:

Tight top-down control

Employee standardization and specialization

Management by impersonal measurement and analysis

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Participative Management

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Actively involves employees

Employee suggestion programs

Participation groups

Quality circles

Leaders determine purpose and goals, make final decisions, and decide rewards

Employees are not allowed to be true partners in the enterprise

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Participative Management

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Employees are expected to:

Make suggestions for quality improvements

Act as team players

Take greater responsibility for their own jobs

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Stewardship

Belief that leaders are deeply accountable to others as well as to the organization

Without trying to control others, define meaning and purpose for others, or take care of others

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Principles for Stewardship

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Adopt a partnership mindset

Give decision-making power and the authority to act to those closest to the work and the customer

Tie rewards to contributions rather than formal positions

Expect core work teams to build the organization

The Servant Leader

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Puts service before self-interest

Listens first to affirm others

Inspires trust by being trustworthy

Nourishes others and helps them become whole

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Courage

Mental and moral strength to engage in, persevere through, and withstand danger, difficulty, or fear

Accepting responsibility

Nonconformity

Pushing beyond the comfort zone

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Courage

Asking for what you want and saying what you think

Abilene paradox: Tendency to resist voicing their true thoughts or feelings in order to please others and avoid conflict

Fighting for what you believe

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How Does Courage Apply to Moral Leadership

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Applying courage to:

Be unconventional and do what is right

Step up and take responsibility

Balance:

Profit with people and self-interest with service

Control with stewardship

Act like a moral leader

Whistleblowing: Employee disclosure of illegal, immoral, or unethical practices in the organization

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Finding Personal Courage

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Believe in a higher purpose

Draw strength from others

Harness frustration and anger

Take small steps